BANDAR SERI BEGAWAN, Dec 9 — Prime Minister Datuk Seri Najib Razak said the closer cooperation and high commitment between Malaysia and Brunei Darussalam in implementing the principles under their Exchange of Letters (EOL) had produced positive results that greatly benefited both countries.

Najib (picture) said among the noticeable developments following the EOL in March 2009 was closer Malaysia-Brunei ties, especially in the oil and gas exploration sector.

“One of the important provisions under the EOL is the Commercial Arrangement Area (CAA) involving the development of the oil and gas sector. I need to stress here that increasing Malaysia-Brunei cooperation through Petronas has resulted in positive developments.

“Among them was that three days ago, a large gas location in the CA2 area was found and which is commercially viable. As scheduled, this area will be a source (for gas supply) to Brunei LNG which has much need for additional gas supply.”

Najib said this to Malaysian journalists at the Brunei International Airport, here, last night before departing for Kuala Lumpur after a bilateral meeting with the Sultan of Brunei, Sultan Hassanal Bolkiah in conjunction with the 17th Malaysia-Brunei Annual Leaders Consultation.

According to Najib, following the signing of the Production Share Agreement (PSA) for Blocks CA1 and CA2 in 2010 between Petronas dan Brunei Petroleum (BP), cooperation was expanded through the signing of the Letter of Agreement between Petronas and PB during the annual consultation this time.

He said through this, various strategic cooperation initiatives were undertaken for the benefit of both countries, including the awarding of oil and gas exploration rights to Petronas in Blocks N and Q, as well as boosting cooperation in downstream industries like the shipyard fabrication project at Muara Besar, Brunei.

“Besides that, we will continue discussions to expand oil exploration activities at the CA1 area. An interesting development is the unitisation programme or model, whereby the issue of oil and gas areas that transcend the waters of both countries was resolved through the mechanisms that were agreed upon by both countries.

“With the division of oil and gas areas sorted out and agreed upon, it is expected that from the first quarter of next year, oil production by Malaysia will increase substantially,” he said.

Najib said Brunei had also shown interest to invest in Progress Energy Cooperation Ltd in Canada, which had been bought over by Petronas, and he hoped the Brunei government would consider a bigger involvement in future. — Bernama